Answer (D) is correct . Total manufacturing cost is the sum of direct materials cost, direct labor cost, and manufacturing overhead. Beginning materials $ ?67,000 ? Add:? purchases 163,000 Add:? transportation in 4,000 Less:? purchase returns (2,000) Materials available $232,000 Less:? ending materials (62,000) Materials used in production $170,000
Answer (A) is incorrect because The amount of $502,000 is based on actual overhead.
Answer (B) is incorrect because The amount of $503,000 incorporates the change in finished goods inventories.
Answer (C) is incorrect because The amount of $363,000 excludes overhead but includes the change in finished goods inventory.
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Madtack Company’s total manufacturing cost for November is
